THAI exporters were urged to adjust their strategies as Vietnam is gaining ground with a comprehensive economic partnership agreement with the United Arab Emirates (UAE) that impacts export of agricultural goods and electronics and computer components, Naewna newspaper said this morning (Nov. 2).
The Thai Trade Centre in Ho Chi Minh City, under the Ministry of Commerce, said the Ho Chi Minh City Investment and Trade Promotion Centre, in collaboration with Vietnam’s Ministry of Industry and Trade, held a seminar on Oct. 23, 2026, titled “Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA): Export Potential to the Middle East and Africa for Vietnamese Enterprises.”
The event aimed to encourage Vietnamese businesses to leverage tariff preferences and rules of origin under CEPA to expand their exports to UAE, the Gulf Cooperation Council (GCC) countries, and the broader Middle East and Africa region.
CEPA, which came into effect on Feb. 3, 2026, could alter the competitive landscape for exporters from Southeast Asia, including Thailand. Under the agreement, UAE has committed to reducing or eliminating import duties on Vietnamese goods, thereby enabling Vietnamese enterprises to lower their market-entry costs and gain a price advantage.
Thai product categories likely to be affected include agricultural goods and processed foods, such as rice, canned seafood, and tropical fruits, sectors in which both Thailand and Vietnam possess significant production and export potential. Electronics and computer components, which are key exports for both nations, are also impacted.
Thai exporters may face price pressure and the risk of losing orders if importers can source these goods from Vietnam at a lower total cost.
Thai businesses, both those operating domestically and those in Vietnam, were urged to shift their strategy away from price-based competition. Instead, they should focus on developing value-added products, differentiating through packaging, and enhancing production efficiency.
It is particularly important to ensure compliance with rules of origin, Halal standards, technical requirements, and traceability systems to effectively access UAE and GCC markets.
Furthermore, Thai businesses should forge partnerships with local importers, distributors, and retailers. They might also consider using UAE as a distribution hub for the broader Middle East and African markets. Simultaneously, Thai enterprises operating in Vietnam can leverage their existing production bases and trade networks there to expand their distribution channels within the region.
In the long term, CEPA is expected to stimulate investment from UAE into Vietnam, particularly in logistics, energy, and industrial estates, potentially strengthening Vietnam’s role as a production base and a vital trade gateway to the Middle Eastern market. As a result, Thai entrepreneurs face increased competition—both in terms of exports and in attracting investment.
Nevertheless, significant business opportunities remain for Thai enterprises with strengths in manufacturing, food technology, agricultural processing, and logistics. These businesses could consider forming joint ventures or establishing networks with counterparts in Vietnam and UAE to expand their market reach and integrate regional supply chains.
It is essential to monitor the progress of trade agreements between UAE and competing nations, allowing for the adjustment of trade, investment, and market-diversification strategies in response to the evolving competitive landscape.
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This and Front Page: Representative image of exports from Vietnam. Photo- Naewna
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